WSJ Opinion: Potomac Watch Donald Trump's 'Liberation Day' Tariffs Are Back
Jul 8, 2025
Mary Anastasia O'Grady and Alicia Finley, both Wall Street Journal columnists, dive into Trump’s newly announced tariffs on Japan and South Korea. They analyze the potential economic fallout and uncertainty these tariffs bring. The discussion explores whether Trump aims for actual trade deals or is more focused on boosting revenue from trade deficits. They also critique the broader implications on U.S. businesses and delve into the complexities of global supply chains, questioning the effectiveness of these tariff strategies.
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Trump's High Tariffs on Allies
- President Trump plans to impose 25% tariffs on Japanese and South Korean imports starting August 1, reflecting his focus on trade deficits and reciprocal tariffs.
- Despite threatening tariffs, Trump remains open to negotiation, showing a somewhat flexible stance.
Tariffs Impact Economy and Market
- Trump is influenced by stock market reactions and seeks to impose tariffs without causing economic shocks.
- His tariffs, while intended to protect domestic industries, risk slowing economic growth and may be adjusted accordingly.
Tariffs Raise Costs and Risk Shortages
- The proposed tariffs risk raising consumer and business costs by imposing up to 50% on imports like autos and industrial equipment.
- These tariffs could reduce competition, raise prices, and cause shortages, affecting both U.S. manufacturers and consumers.